article describes the principles of targeted marketing and how it is
such a powerful tool for increasing sales.
|Home :: Contact us :: Privacy :: Site map :: News :: About us|
Targeted marketing: what is it?
This article describes the principles of targeted marketing and how it is such a powerful tool for increasing sales. Part 2 gives practical advice on how to carry out a targeted marketing campaign using an easy-to-follow 7 stage plan.
What is targeted marketing?Targeted marketing is, according to the text books, "the process of distinguishing the different groups that make up a market, and developing appropriate products and marketing mixes for each target market involved."
One of the curses of today's technology-driven advertising media (and that includes the Internet) is that it is relatively easy to blanket very wide sectors of the population with your promotional message, in the hope that some of the flying bullets will find their mark. This is not only wasteful of your resources (and other people's), but it can also work against your image. Probably well over half of the 'direct' mail sent out today deserves the title 'junk' mail, because that's precisely what it is. Why is it junk?
The guided missile
Today's anti-aircraft attack method is far more effective. Just one heat-seeking ground-to-air missile is released, which homes accurately in on its target.
That's what targeted marketing is all about. Recruitment agencies say that the ideal job advert will attract just one applicant, and that will be the perfect candidate for the job. Ideally, that is what all advertising should aim for. That's clearly impractical, but your advertising and promotion should be moving in that direction.
are targeting just one specific prospect (and there are occasions when
you could be doing just that), practical targeted marketing could, perhaps
be more accurately described as...
...Batch targetingThis is where you break your overall target market down into manageable segments - such as one specific industry, or a geographical area, or a demographic profile. The segments should not just be ones which are convenient to you, but ones which allow you to direct, to one specific target market, promotional messages which:
If, for example, you sell office equipment or consumables, you obviously have a vast market - almost every type of business. But, instead of sending out thousands of mailings to every type of business, pick out, say, stone quarries (to pick an unusual example!) You could focus on dust covers for equipment and the more rugged end of office equipment ranges.
You can demonstrate that you understand the needs of the quarrying industry. If you've got a few customers in that type of industry, you will already understand their requirements. If not, pick up the phone and without trying to sell, do a little market research amongst two or three prospects in that sector.
By showing that you are a specialist supplier, you'll stand out from all your other 'me too' competitors. This must be a significant competitive advantage. We know of an insurance broker who was just your average broker until he started to focus on selling insurance to dentists. Within two years, he was the UK's leading broker to the dental profession.
To summarise, the advantages of targeted marketing are: